On April 13, 1987 the POEA issued Accreditation Certificate No. 2471 to NAVALES for it to recruit, hire and employ ship personnel thru SEASCORP. 6 At the bottom left portion of the Certificate, the following reads: Vessel/s enrolled: (1) 1. ARAWA BAY xxxx In a SPECIAL POWER OF ATTORNEY dated May 19, 1987, 7 NAVALES, acting for and on behalf of ARAWA BAY SHIPPING CO. PTE LTD., named, constituted and appointed SEASCORP as its authorized attorney-in-fact in the hiring, placement and employment of Filipino seamen to, among other things, sue and be sued in ARAWA BAY SHIPPINGS name, place and stead, subject however to the provisions of the Manning Agency Agreement dated April 10, 1987 executed by NAVALES, acting on behalf of ARAWA BAY, and SEASCORP; and to assume jointly and solidarily with ARAWA BAY SHIPPING any liability that may arise in connection with the workers contract and/or implementation of the employment contract and other terms and conditions of the appointment as defined and spelled out in the Manning Contract. Under the Rules of the POEA, SEASCORP, as manning applicant, was required to execute an Affidavit of Undertaking in connection with the discharge of its duties as manning agent. Accordingly, SEASCORPs President, in an Affidavit of Undertaking of July 10, 1987,8 stated: xxx 2 That SEASCORP has been appointed as the manning agent of NAVALES SHIPMANAGEMENT & MARINECONSULTING PTE, LTD. (NAVALES) of Maxwell House, 20 Maxwell Raod, Singapore to recruit Filipino crews for its shipping; 3 That as NAVALES appointed manning agent in the Philippines, SEASCORP is able, willing and ready to assume any and all liabilities that may arise or that may have arisen with respect to seamen recruited and deployed by SEAGULL MARITIME CORPORATION (SEAGULL) for NAVALES and hereby assumes full and complete responsibility over all seamen/workers originally recruited and deployed by SEAGULL for NAVALES. (Underscoring supplied) SEASCORP was to claim later that this Affidavit was copied by its employees from a copy of the POEA. On the basis of above-quoted paragraph 3 of SEASCORPs Presidents Affidavit of Undertaking, SEAGULL filed a complaint at the RTC of Manila for the recovery of the amount of P1,322,527.74 it allegedly paid Balatongan in accordance with the decision